Cloud Capital's Historic $1.325 Billion ABS Issuance Sets New Benchmark in Data Center Financing
Cloud Capital, a prominent investment management firm in the data center industry, has successfully completed a landmark asset-backed securities (ABS) issuance totaling $1.325 billion. This transaction is notably recognized for achieving the lowest pricing spread for Class A-2 senior notes in the sector since 2021. The securities are supported by four stabilized data center properties located in Northern Virginia and Minneapolis, reinforcing the firm's robust investment strategy focused on high-quality, long-term assets.
In a statement, Hossein Fateh, Founder and CEO of Cloud Capital, expressed pride in this accomplishment, highlighting that it reflects the firm's commitment to delivering valuable and stable investment opportunities to institutional investors. The issuance is particularly significant as it received the highest rating granted for any data center ABS issuance, according to SP Global Ratings' new methodology for assessing such instruments. This successful execution is deemed a critical step toward setting new financial standards in the digital infrastructure sector.
The issued securities include five-year and seven-year senior tranches rated A(sf), along with a five-year subordinated tranche rated A-(sf). Shariar Mohajer, the firm's Chief Investment Officer, noted that the issuance attracted remarkable interest from investors, leading to oversubscription across all tranches. This indicates strong confidence in the underlying assets' creditworthiness and management team’s ability to unlock value within the portfolio.
Demonstrating Cloud Capital's focus on sustainable investment, these notes are categorized as Secured Green Standard Bonds, which have received positive endorsements from Sustainalytics. In line with this, the firm has recently launched its Green Finance Framework aimed at governing the issuance of various green financial instruments, such as green bonds and loans.
The proceeds from this issuance are slated for refinancing existing debts and supporting general corporate purposes. Jason Weaver, Executive Vice President and Head of Capital Markets at Cloud Capital, underscored that this issuance not only reflects the strength of the platform but also enhances their funding capabilities. Incrementally, it lowers the cost of debt, ultimately benefiting their investors' interests, enhancing their portfolio performance.
With a global footprint and a specialization in data center investments, Cloud Capital has amassed a portfolio valued at over $4 billion since 2020. This firm adheres to a strict underwriting process, ensuring high standards for both proprietary and off-market transactions while engaging in active asset management across its interests. The main offices of Cloud Capital are situated in Washington, D.C., Tampa, Florida, and London, allowing them to cover significant data center markets effectively.
For further insights into Cloud Capital and its investment strategies, visit their official website at www.cloudcapital.com. With the completion of this significant ABS issuance, Cloud Capital continues to set commendable benchmarks in the data center investment sector, reinforcing their commitment to sustainable and profitable investment practices.
In a statement, Hossein Fateh, Founder and CEO of Cloud Capital, expressed pride in this accomplishment, highlighting that it reflects the firm's commitment to delivering valuable and stable investment opportunities to institutional investors. The issuance is particularly significant as it received the highest rating granted for any data center ABS issuance, according to SP Global Ratings' new methodology for assessing such instruments. This successful execution is deemed a critical step toward setting new financial standards in the digital infrastructure sector.
The issued securities include five-year and seven-year senior tranches rated A(sf), along with a five-year subordinated tranche rated A-(sf). Shariar Mohajer, the firm's Chief Investment Officer, noted that the issuance attracted remarkable interest from investors, leading to oversubscription across all tranches. This indicates strong confidence in the underlying assets' creditworthiness and management team’s ability to unlock value within the portfolio.
Demonstrating Cloud Capital's focus on sustainable investment, these notes are categorized as Secured Green Standard Bonds, which have received positive endorsements from Sustainalytics. In line with this, the firm has recently launched its Green Finance Framework aimed at governing the issuance of various green financial instruments, such as green bonds and loans.
The proceeds from this issuance are slated for refinancing existing debts and supporting general corporate purposes. Jason Weaver, Executive Vice President and Head of Capital Markets at Cloud Capital, underscored that this issuance not only reflects the strength of the platform but also enhances their funding capabilities. Incrementally, it lowers the cost of debt, ultimately benefiting their investors' interests, enhancing their portfolio performance.
With a global footprint and a specialization in data center investments, Cloud Capital has amassed a portfolio valued at over $4 billion since 2020. This firm adheres to a strict underwriting process, ensuring high standards for both proprietary and off-market transactions while engaging in active asset management across its interests. The main offices of Cloud Capital are situated in Washington, D.C., Tampa, Florida, and London, allowing them to cover significant data center markets effectively.
For further insights into Cloud Capital and its investment strategies, visit their official website at www.cloudcapital.com. With the completion of this significant ABS issuance, Cloud Capital continues to set commendable benchmarks in the data center investment sector, reinforcing their commitment to sustainable and profitable investment practices.
Topics Financial Services & Investing）
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